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June 2014

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WuXi PharmaTech Begins Construction of New R&D and Manufacturing Campus in Changzhou

WuXi PharmaTech (Cayman) Inc., a leading pharmaceutical, biotechnology, and medical device research and development (R&D) services company with operations in China and the United States, announced on May 8th that its manufacturing subsidiary, Syn-The-All (STA) Pharmaceuticals Co., Ltd., has begun construction of a new, fully integrated R&D and cGMP manufacturing site in Changzhou, about 110 miles (177 km.) west of Shanghai. The new construction aims to meet the rapidly growing demand for WuXi's manufacturing services, which have quadrupled their revenues in the past four years.

The new campus will be constructed in phases and include both research manufacturing and commercial manufacturing facilities. Facilities constructed in phase 1 will double the company's current manufacturing capacity and be operational by the fourth quarter of 2015. Upon completion of the entire project, the site will triple current capacity and can have more than 1,500 employees, including chemists, production staff and supporting staff, to seamlessly move new chemical entities from early stage process development through preclinical and clinical deliveries to commercial production.

"This project marks an important milestone in STA's mission of building a fully integrated API development and manufacturing platform," said Dr. Ge Li, Chairman and CEO of WuXi PharmaTech. "It furthers our commitment to providing partners worldwide with highly efficient and cost-effective solutions that help bring better medicines faster to patients."

A Second Singapore Expansion
for Menlo Logistics

Menlo Logistics (Menlo), the US$1.5 billion global logistics and supply chain management subsidiary of Con-way Inc., dedicated its new state-of-the-art warehousing and distribution management centre in Singapore on May 6th. The new, 50,000-sq.-m. (538,200-sq.-ft.) Benoi centre brings the company's footprint in Singapore to eight facilities totaling 219,700 square meters (2.3 million sq. ft.). The expansion spotlights Menlo's commitment to investing in the growing market for distribution services in Singapore, and the country's rising prominence as a strategic logistics hub for Asia.

"Singapore and the regional Asia markets are some of our fastest growing sectors, due in large part to our strong market share and industry-specific expertise in wine and spirits distribution," said Robert L. Bianco Jr., president of San Francisco, California-based Menlo Logistics, who will headline Menlo's dedication ceremony here today. "Our long-term lease for this facility with our real estate partner, Mapletree Logistics Trust, is another demonstration of Menlo's commitment to the Singapore market, not only in wine and spirits, but also in distribution capacity for automotive, consumer electronics and apparel, aerospace and industrial. We are investing to grow with our customers."

Menlo is a leading global provider of logistics, transportation management and supply chain services with operations on five continents. Established in Singapore over a decade ago, the company's services range from dedicated contract logistics to warehousing, distribution and transportation management; supply chain engineering and other value-added services across multiple industries.

Representing a capital investment of S$127 million by Mapletree Logistics Trust (MLT), the new distribution centre with a gross floor area of 92,500 square meters (99,567 sq. ft.) features specialized warehousing capabilities for servicing the global wine and spirits industry. It also supports the warehousing and logistics requirements of various clients engaged in a variety of other industries for which Singapore is a growing market. The facility has been awarded the prestigious Building and Construction Authority's Green Mark Platinum Award, the highest certification for sustainable buildings in Singapore.

"We have been working with Menlo, our valued customer, over the last nine years to support its continued growth across Asia. Menlo's commitment to this project and our growing relationship underscore MLT's position as a preferred partner of choice for customers seeking quality logistics real estate solutions in the region. We look forward to strengthening this partnership further as Menlo continues on its growth path," said Ms. Ng. "This redevelopment project has transformed Benoi Logistics Hub from an old, single-story warehouse into a modern, five-story ramp-up facility with significantly improved efficiency and capabilities. We will continue to look out for asset enhancement or redevelopment opportunities that are aligned with the expansion needs of our customers like Menlo, while concurrently unlocking additional value from our portfolio," she added.

"Our customers expect consistent, efficient, high-quality service, and this new facility, coupled with our commitment to sustainable business practices and Lean continuous improvement, delivers on that promise," noted Menlo's Bianco.

The opening of the new Benoi facility comes on the heels of Menlo's new Sunview Way distribution centre, which opened inNovember 2012. Menlo's existing network of seven facilities is located throughout Singapore with 400 employees and provides dedicated and multi-client inventory and distribution management. The company services over 200 Singapore businesses and multi-national companies in sectors such as automotive, high-tech, consumer goods, industrial, aerospace and wine and spirits distribution. The Benoi facility will serve as one of Menlo's most advanced warehouses for storage and distribution, high-value-added services like picking and packing operations, customized labeling and return management services. More than 100 employees will support its multi-disciplined operations. Menlo also operates additional multi-client logistics facilities in Southeast Asia, as well as China, India, Australia, North America and Europe.

Tenaris Inaugurates R&D Center in Brazil

Tenaris inaugurated on April 15, 2014, its new Research and Development Center in UFRJ's Technological Park (Universidade Federal do Rio de Janeiro) on Ilha do Fundão, Rio de Janeiro. "The US$39 million investment was motivated by the strategic opportunity to contribute to Brazil's technological and economic development. The immense energy reserves, such as the Pre-Salt layer, present unprecedented challenges to the industry and demand safe and efficient operations while maintaining utmost respect for the environment,” says Renato Catallini, Tenaris President in Brazil.

Marcio Marques, Director of the Tenaris R&D Center in Brazil, said that close interaction among companies in the energy sector with the University and with CENPES (Petrobras’ R&D Center in Brazil) has strategic importance for the country's technological leadership, and that Tenaris wants to contribute to this project. "In a total area of 4,013 square meters, of which 2,880 are constructed area, the Center will be dedicated to the development of products and technologies for OCTG, line pipe and other markets, such as automotive, nuclear, mining and structural applications, as well as to the constant improvement of products already being offered to the Brazilian market," he says.

The Center will mostly focus on the development and qualification of TenarisHydril premium connections and the TenarisHydril BlueDock™ weld-on connector, welding technologies, differentiated coatings, such as clad and organic, and on areas of study in fracture mechanics and finite elements.

"The research carried out here will directly impact our business and challenges, including high pressure and corrosion that we are facing in our exploratory wells, mainly in the Pre-Salt. This center enriches our value chain and contributes to Brazil’s qualifications for the energy industry in the medium and long term," says Rudimar Lorenzatto, Petrobas E&P Manager.

This is Tenaris’s fifth R&D Center worldwide, and it reinforces the company's position as global leader in high-performance, high-specification tubular products, serving Brazil and the world. The other Centers are in Argentina, Mexico, Italy and Japan.

H.B. Fuller Opens a
Manufacturing Facility in Colombia

H.B. Fuller Company announced on May 5th the opening of its new, $10 million manufacturing facility to support the expansion of its business in the Andean Region of South America. The plant is located in Rionegro, approximately 36 kilometers (22 miles) east of Medellin, Colombia.

For 25 years, H.B. Fuller has had a strong and growing presence in the Andean Region's adhesives market, operating from a manufacturing facility in Itagui before moving to its new 20,770-square-meter (223,500-sq.-ft.) plant in Rionegro. The new site will provide increased production capacity, a new technical laboratory for hygienic products and better access to the country's second largest airport.

"This facility represents a continued commitment to our customers, shareholders, local community and to our employees, who have worked so hard to bring this investment to life," said Traci Jensen, senior vice president, Americas Region. "It is a sign of the important role this business and geography play in our strategic plan for the region and for H.B. Fuller."

The Rionegro facility will supply hot melt and water-based adhesive technologies for the hygienic, packaging and corrugate and assembly markets. In addition to production, the facility houses administrative offices, labs, and receiving and dispatching. The new hygienic technical laboratory will help meet the demands of the region's growing nonwoven hygiene market and provide value to H.B. Fuller's principal customers who have a presence there.

"The region's economy is growing, and we want to take advantage of the opportunities the market has to offer as well as support our customers' long-term success here," Jensen added. "Our capital investment is an acknowledgement of our confidence in the region. It will allow us to bring more value to our relationships and enhance our competitive position."

In the past few years, H.B. Fuller has built world-class manufacturing facilities in Nanjing, China, and Pune, India. In addition, it has made major upgrades to facilities in China and across the Americas and EIMEA regions. In 2013, H.B. Fuller acquired Plexbond Química, expanding the company's presence in Brazil and accelerating its growth in the flexible packaging market.

Johnson Controls Expands its Battery Footprint in China

Johnson Controls is growing its presence in China by opening a new automotive battery manufacturing plant that will produce 6 million automotive batteries per year in the world's largest new vehicle market, where 22 million new vehicles are produced annually.

The global multi-industrial company's new 133,000 sq. m. (1.4 million sq. ft.) facility in Chongqing City reflects an investment of $154 million. Located in Fuling District of Chongqing, in Western China, the new plant will bring state-of-the-art technology and services to customers. It was built with the industry's leading sustainability and environmental standards.

"The opening of our Chongqing plant builds on Johnson Controls' deep history in this region and demonstrates our long-term commitment to China, which is a key strategic market for Johnson Controls,'' said Kenneth Yeng, vice president and general manager of Johnson Controls Power Solutions China. "This facility will not only enable us to meet increasing demand from our customers in China, but will also allow us to demonstrate our global leadership in technology and sustainability."

The new plant is expected to create more than 500 jobs once at full capacity. Johnson Controls entered the Chinese automotive supply market with batteries in 2005 and continues to invest in bringing advanced technologies, capacity and technical capabilities to China. Today, Johnson Controls employs tens of thousands of people in China. Johnson Controls is in the process of building a new corporate headquarters in Shanghai, and recently announced that two members of the global executive team will be located in the new headquarters.